Renewable Energy Group Inc (REGI) stock had mixed trading on Monday, May 3, 2021. In the normal trading hours, REGI shares lost 5.35% to close at $52.55 per share but in the after-market session, they gained 9.25% to close at $57.41 per share.
REGI shares have surged 127.88% over the last 12 months, and they have lost12.88% in the past week. Over the past three months, the stock has sink 46.91%, while over the past six months, it has shed 8.35%.
Let’s see why REGI faced negativity and later it gains in the after-hours?
Financial results announcement
On May 3, 2021, Renewable Energy Group, Inc. reported its financial results for the first quarter ended March 31, 2021.
Q1 2021 financial highlights
- Q1 2021 revenues were $540 million compared to $473 million in Q1 2020.
- Renewable Energy Group net income was $39 million or $0.88 per share on a fully diluted basis in the first quarter of 2021, compared to $73 million or $1.67 per share on a fully diluted basis in the first quarter of 2020.
- Adjusted EBITDA was $56 million in Q1 2021 compared to $89 million in the first quarter of 2020.
- Q1 2021 gross profit was $74 million, compared to gross profit of $106 million in Q1 2020.
- Operating income was $42 million compared to $78 million
- Selling, general and administrative expenses were $4 million in Q1 2021
- REG had cash and cash equivalents, restricted cash, and marketable securities (including long-term marketable securities) of $611 million on March 31, 2021.
REGI facing legal battles
Renewable Energy Group is facing several securities class action lawsuit filed by different legal firms.
Levi & Korsinsky, LLP said that a securities class action lawsuit has been commenced in the United States District Court for the Southern District of New York on May 3, 2021, against the company.
The class action is filed to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
New CFO appointment
On April 16, 2021, Renewable Energy Group, Incappointed R. Craig Bealmear as Chief Financial Officer, effective April 19, 2021.
Bealmear has 28 years of experience in the oil and gas industry in a variety of finance, strategy, and commercial leadership roles across the U.S. and U.K. His most recent role as Chief Financial Officer, North America Fuels at BP.
The REGI share price went up in the after-hours after the company announced the improved financial results for Q1 2021. We are hopeful that REGI will continue this speed on Tuesday as well.
About the company
Renewable Energy Group is a bio-diesel production company organized in Delaware and headquartered in Ames, Iowa. The company operates 13 biorefineries and a feedstock processing facility. As of 2018, the company is a Fortune 1000 corporation.
REG is meeting the growing global demand for lower-carbon fuels and leading the way to a more sustainable future by delivering over 4.2 million metric tons of carbon reduction in 2020.